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Application & Procedure for cancellation - GST Ready Reckoner - GSTExtract Application Procedure for cancellation Application for Cancellation by the registered person section 29 read with Rule 20 A registered person, other than a) a person to whom a registration has been granted under rule 12 (Registration for TDS TCS), or b) a person to whom a Unique Identity Number has been granted under rule 17 seeking cancellation of his registration under sub-section (1) of section 29 shall electronically submit an application in FORM GST REG-16. Following information also furnished along with submitting application on the date from which the cancellation is sought, along with the application, relevant documents in support thereof, at the common portal:- a) inputs held in stock or b) inputs contained in semi-finished or c) finished goods held in stock and d) capital goods held in stock within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner. Reversal of input tax credit or payment of tax on inputs or capital goods 1) In case of Inputs held in stock :- Every registered person whose registration is cancelled shall pay on amount, by way of debit in the electronic credit ledger or electronic cash ledger, a) equivalent to the credit of input tax in respect of Inputs held in stock and inputs contained in semi-finished or finished goods held in stock and capital goods held in stock on the day immediately preceding the date of such cancellation, or b) the out put tax payable on such goods Whichever is higher 2) In case of capital goods or plant machinery:- the taxable person shall pay an amount equal to the a) input tax credit taken on the said capital goods or plant machinery, reduced by such percentage points as may be prescribed or b) the tax on the transections value of such capital goods or plant and machinery under section 15 read with rule 44 of GST Rules , , whichever is higher . Deemed Cancellation:- The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under Central Goods and Services Tax Act. Cancellation does not affect existing liability:- The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. Procedure for cancellation Of Registration Read with Rule 22 In the event, the proper officer has reasons to believe (Suo-moto cancellation) that the registration of a person is liable to be cancelled, a notice to such person in FORM GST REG-17 , requiring him to show cause, within a period of 7 working days from the date of the service of such notice, as to why his registration shall not be cancelled will be issued. The reply to the show cause notice issued has to be furnished by the registered person in FORM REG 18 within a period of 7 working days. In case the reply to the show cause notice is found to be satisfactory, the Proper officer will drop the proceedings and pass an order in FORM GST REG 20 . when the person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer will issue an order in FORM GST REG-19 , within a period of 30 days from the date of application or, as the case may be, the date of the reply to the show cause issued, cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty. Effective date of cancellation:- The cancellation of registration shall be effective from a date to be determined by proper officer. He will directing to taxable person to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section (5) of section 29 .
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